Deduction under section 80tta of income tax act 1961

Deductions in respect of other incomes deduction in respect of interest on deposits in savings account. Section 80jja 80jjaa of income tax act deduction in. Deduction in respect of interest on deposits in savings account. Section 80d of income tax act, 1961 provides for deduction in respect of payment made for the health insurance premium and preventive health checkups.

May 28, 2018 a detailed explanation about the deduction us 80tta of the income tax act. There are many and very common expenses which are allowed to the assesses to claim as deduction under income tax which ultimately reduces the net taxable income and income tax, but the assesses are not aware about the expenses which they incurred in their daily life and not take care of. To help individuals bring down their income tax liability, the income tax act in india offers a variety of deductions that can be claimed by taxpayers. Amongst the subsections of chapter via, the most remarkable are section 80 ia and 80 ib as they relate to the deductions for profits arising out of infrastructures. It should be noted that there is no upper limit specified under section 80ggc, which means any amount contributed to a political party can be claimed as a tax deduction. Section 80tta all about claiming deduction on interest cleartax. The patent in question should be registered under the patent act of 1970, either on or after april 1, 2003. Tax deductions under section 80ddb of income tax act 1961 can be claimed for medical expenses incurred for. Section 80tta of income tax act deduction in respect of. Section 80c deductions of the income tax act 1961 lowers the tax liability of a person against his taxable income as certain deductions are allowed. Income tax deduction income tax standard deduction 2019 2020. As said earlier, section 80tta is categorized under chapter vi a of the income tax act, 1961.

Section 80tta deduction in respect of interest on deposits in savings account. Section 80tta is introduced with effect from april 01, 20 and will apply from ay 2014 and onwards. Deduction and allowances available under income tax act 1961 against expenses incurred by assesses. All about section 80tta updated on february 29, 2020, 10 views. Viewers are advised to ascertain the correct positionprevailing law. Section 80tta of income tax act 1961 is introduced to provide deduction to an individual or a hindu undivided family in respect of interest received on deposits in a savings account held with banks, cooperative banks and post office. Income tax deduction income tax standard deduction 2019. Section 80ttb of income tax act, 1961, inserted by finance act, 2018, provides for a higher deduction, in the case of senior citizens i. At present, a deduction upto rs 10,000 is allowed under section 80tta to an assessee in respect of interest income from savings account. This section of the it act, 1961 offers a purview for tax rebates on investments made in the pension funds.

Section 80tta is introduced to provide deduction to an individual or a hindu undivided family in respect of interest received on deposits not being time deposits in a savings account held with banks, cooperative banks and post office. Sections 80tta and 80ttb provide deduction in respect of the interest. Out of this amount, the taxable amounts is rs 8,000. If you pay the health insurance premium for your spouse, children, and parents, then are eligible to avail the tax deduction under section 80d of income tax act, 1961. Deduction on interest under section 80tta of income tax act. Lets go through all the tax deductions available under section 80 of the income tax act, 1961. Section 80jja 80jjaa of income tax act deduction in respect.

Higher deduction in respect of interest income to senior citizen under section 80ttb. However, an assessee who has claimed deduction under this section for assessment year 201718 and earlier assessment years shall be allowed deduction under this section till the assessment year 201920 if he is otherwise eligible to claim the deduction as per the provisions of this section. Tax deductions are offered to the taxpayer to save tax by investing in welfare schemes. Jul 25, 2018 maximum deduction under section 80tta. If person a has a saving account and he earned an interest amounting to rs 18,000. There are certain conditions and criteria which have to be followed by the individual for the said benefits. Presently, section 80tta provides rs 10,000 deduction to all individualhuf taxpayers. Section 80jja and 80jjaa of income tax act 1961 deduction in respect of profits and gains from business of collecting and processing of biodegradable waste deduction in respect of employment of new workmen are defined under section 80jja and 80 jjaa of income tax act 1961. Deductions under section 80c to 80 u of income tax act 1961 ay 202021 fy 201920 currently fy 201819, income tax on notional rent is payable if one has more than one selfoccupied house. Aug 30, 2017 section 80tta of income tax act ay 201718 about canihelpyouonline 219 articles. No tax on notional rent on second selfoccupied house has been proposed. Section 80tta deduction on interest on savings bank account.

Donation to pmcares fund via employers eligible for. The amount you claim under this section is reduced from your gross total income for the purposes of computing income tax. An assessee, whose income is taxable at higher rates will have more tax savings i. This deduction was introduced in the finance bill of 20 and is still applicable. Deductions on income received through royalty on a patent. The deduction will be shown under section 80 deductions under section 80tta of income tax act. In this video we have covered 8 deductions of chapter via of income tax act, 1961. In union budget 2018, there has been no changes made in section 80tta.

It depends upon applicable tax rates as per the total taxable income and status of assessees. Among the various tax saving options, most individuals prefer to claim tax deduction under section 80c of the income tax act, 1961. However, many are not aware that they can claim the interest received from a post office savings account as exempt from income tax along with claiming the tax benefit under section 80tta. The government has done a lot to remove income disparity, poverty, illness and discrimination in india. Incometax act, 1961 section 80ttb deduction in respect of interest on deposits in case of senior citizens. Donations to pm cares fund will also qualify to be counted as corporate social responsibility csr expenditure under the companies act, 20. For example, if your gross total income is rs 10 lakh and you have claimed a deduction of rs 1.

Post office savings bank interest exemption under section 1015i. Section 80tta deduction interest on bank savings deposit. Section 80tta is introduced to provide deduction to an individual or a hindu undivided family in respect of interest received on deposits not. Section 80tta of income tax act, 1961 provides for a deduction of upto rs. Deductions under section 80 ia and 80 ib of the income tax. Section 80tta of income tax act 1961 deduction in respect of interest on deposits in savings account is defined under section 80tta of income tax act 1961. A complete guide on section 80tta of income tax act. Deductions under section 80c to 80 u of income tax act 1961 ay 202021 fy 201920. A buyer in such a case can claim tax deductions up to inr 50,000 under section 80ee of the act. Section 80c allows individuals and hufs to claim tax deduction of up to rs. Sec 80tta income tax exemption is allowed to an individual as well as a huf. Section 80tta is a part of the income tax of 1961 that allows a deduction of upto rs. If interest earned is more than 10,000 then balance amount will be taxable as before i.

A detailed explanation about the deduction us 80tta of the income tax act. The maximum deduction that can be claimed for all savings accounts is rs. Section 80ggc under the income tax act, 1961 provides tax deduction benefits on donations made by any individual to political parties subject to certain conditions. Tax deductions under section 80rrb check eligibility. The income tax act, 1961 is the charging statue for income tax. Section 80tta deduction interest on bank savings deposit taxguru. Section 80 income tax deductions us 80 icici prulife. This section is about claiming deduction on interest. Section 80tta of the income tax act 1961 reads as under. Section 80tta of the income tax act allows deduction of up to rs 10,000 of the total interest income earned from savings account held with a. These returns are displayed under section 80 deductions under section 80 tta. However, since the donation is paid by the employer through employers bank account and cheque, the donation receipt is issued in the name of the employer.

Any insurer can offer these pension funds and can claim a maximum deduction of rs. Information relates to the law prevailing in the year of publication as indicated. What is the maximum amount of deduction allowed under section 80tta. Mar, 2020 deduction in respect of royalty on patents. Section 80c is a popular choice if you want an answer to the question. Section 80c of incometax act, 1961amended by finance act, 2016 deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc. The amount varies with the type of deduction a person is claiming.

An individual can claim a deduction of up to rs 25,000 for the insurance of self, spouse, and. Deduction under section 80ggb and 80ggc of income tax act. The income tax act in india provides with various deductions that can be claimed by an assessee in order to reduce his or her income tax liability. If you are aware of various tax dedcutions provided by the government, you can save more money on taxes. Section 80tta deduction interest on deposits in savings account. Deduction in respect of interest on deposits in savings accounts section 80 tta section 80tta provides a deduction up to rs. The finance bill 2012 has proposed to insert a new section 80tta in the income tax act 1961 which will provide deduction up to rs. Under section 80d, you can claim income tax deduction for medical expenses and health insurance. The maximum amount of deduction allowed under this section is rs. Through this website well give you information on income tax, youtube, mobile, software, computer, tax deduction at source and affiliate marketing and all. Check out how can you claim this deduction and the maximum deduction allowed.

It applies to all individuals and hufs other than senior. Section 80tta offers a deduction of inr 10,000 on income earned through interest. The royalty received by an individual on hisher patent is eligible for tax deductions under section 80rrb of the income tax act. This deduction is allowed only to individual or hindu undivided family huf taxpayers, for the payment of health insurance premium and preventive health checkups of their family. Individual or huf can claim this deduction under section 80tta of the income tax act. This video will help you gain a better understanding about the deduction available on interest on bank savings deposit u. The income tax department never asks for your pin numbers, passwords or similar access information for credit cards, banks or other financial accounts through email the income tax department appeals to taxpayers not to respond to such emails and not to share information relating to their credit card, bank and other financial accounts. Interest paid on housing loan can be treated as part of the cost of acquisition also. Section 80 tta of income tax act deduction in respect of interest on deposits in savings account section 80tta. Section 80tta deduction for interest on savings deposits. Deductions under chapter vi a section 80c, 80d, 80e.

This deduction is applicable for interest on savings accounts held by individuals or hindu undivided families huf. Section 80tta of income tax act check deductions bankbazaar. Chapter via of the income tax act, 1961 deals with deductions allowed to assessees under section 80 of the act. Deduction of interest on savings bank account us 80tta. Section 80u deduction under section 80u of income tax act. Deductions under section 80tta and how to claim it. Section 80tta of the income tax act allows you to claim deductions on savings accounts deposits that are held in a post office, bank, or cooperative society. Section 80c of the income tax act tax deduction up to rs. Gross total income means the total income computed in accordance with the provisions of income tax act, 1961, before making any deduction under chapter vi, i. Mar 31, 2020 section 80ggc has been specified under the income tax act of 1961 for the benefit of those who make donations to political parties. Interest on savings account was earlier taxable as per the slab rates. Section 80tta provides a deduction of rs 10,000 on interest income. Section 80tta deduction in respect of interest on deposits. You can save tax on up to rs 17000 savings account interest.

Section 80u of the income tax act, 1961 includes provisions for tax deduction benefit to individual taxpayers suffering from a disability. Feb 14, 2014 deductions to be made under income tax act, 1961 1. Note that donations to pm cares fund would qualify for 80g benefits for 100% exemption under the income tax act, 1961. For the purpose of claiming deduction under section 371, expenditure should be incurred for the purpose of the business which is carried on by the assessee in the previous year and profits of which are to be computed and assessed and expenditure should be incurred after the business is set up. Tax deduction under section 80dd of the income tax act can be claimed by individuals who are residents of india and hufs for the medical treatment of a dependant with disabilityies or differently abled. Most people are aware that they can claim a deduction of up to rs 10,000 from income to reduce tax payable under section 80tta on the interest received from bank and post office savings accounts. The income tax act in india provides with various deductions that can be claimed by an assessee in order to reduce his or her income tax. Under section 80c of the income tax act 1961, taxpayers can claim deduction. Section 80c of incometax act, 1961 taxindiaupdates in. If the party is registered under section 29a of the people act, 1951, the donations can be made through any recorded mode other than cash.

How senior citizens can avail tax break on interest. Section 80ee of income tax act, 1961 know how can it. Section 80tta income tax deduction on interest on savings. The impact of deductions available under various sections of income tax act is not same for all. Any indian company or enterprise can donate to a political partyparties or an electoral trust and claim tax deduction according to section 80ggb of the income tax act, 1961. Section 80ee of the income tax act, 1961 provides benefits for tax deductions on the interest paid on home loans taken by a first time home buyer. This deduction is given for interest earned on saving deposits with bank, cooperative society or post office. One of the primary reasons behind these deductions is to ensure convenience for taxpayers and encourage more filing. In order to claim tax deduction under section 80u, the individual must be certified as a person with a disability by appropriate medical authority. Deduction and allowances available under income tax act. Deduction under section 80tta income tax department. Mar 31, 2020 section 80tta of the income tax act, 1961 deals with the tax deductions granted on interest.

Section 80ttb deduction for interest on deposits senior. Tax laws are subject to amendments made thereto from time to time. And so deduction for the same amount can be done independently under both the heads. Income tax act, 1961 section 80ttb deduction in respect of interest on deposits in case of senior citizens. Income tax deductions under section 80d of income tax act, 1961. But 80tta deduction for ay 201819 will be given only to the extent of. If the above net taxable income happens to be less than rs 5 lakhs then the tax rebate of rs 12,500 comes in to the picture and should be deducted from the calculated total income tax payable. Through this website well give you information on income tax, youtube, mobile, software, computer, tax deduction at source and affiliate marketing and all new technology in hindi. Deductions under section 80c to 80 u of income tax act 1961. Considering the skyrocketing medical expenses, the section 80d norms are often revised of the income tax department.

Deduction under section 80gga of the income tax act, 1961 is available to all the taxpayers in respect of donations made for specific scientific, social or statistical research or rural development. Sec 80tta income tax exemption is allowed to an individual as well as a huf this deduction is given for interest earned on saving deposits with bank, cooperative society or post office. The assessee can reduce its tax liability under these provisions. The total income of such an individual can be from royalty plus additional sources, with only that income received as royalty eligible for deductions. Person a can claim rs 10,000 as a deduction under section 80tta. Deduction for collective donation under section 80g to. Section 80tta grants a deduction on savings account interest up to rs 10,000 per annum. List of tax deductions under section 80 of income tax.

In this case, you do not need to file an it return. Eligible savings account for claiming deduction under section 80tta. How to claim deduction under section 80tta times of india. Section 80ccd of the income tax act, 1961 focuses on income tax deductions that individual income tax assesses are eligible to avail on contributions made towards the new pension scheme nps and atal pension yojana apy section 80d. Section 80tta of the income tax act, 1961 deals with the tax deductions granted on interest. There is an exhaustive list of deductions under section 80c of the income tax act, 1961. Its functions are to levy, collect, administer and recover income tax. Tax benefits are subject to conditions of section 80c, 80ccc, 80ccd, 80cce, 80d, 80e, 80gg, 80tta and other provisions of income tax act 1961. The interest earned on savings account is exempted from tds under section 194a of income tax act i. Deduction under section 24b and computation of capital. Section 80m of the income tax act inter corporate dividends. Income tax act 1961 benefit of deduction us 80tta rs. Since the donation is being given by the employees, they are entitled to claiming deduction under section 80g of the income tax act, 1961.